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HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 08/27/2009 (3) • KENT Public Facilities District • W A 5 H I N O T O N Special Meeting August 27, 2009 Board Members Present: Mike Miller, Greg Haffner, Lew Sellers, Cass Prindle, Randall Smith Others Present: Colin Campbell, Ron Harmon, Bob Nachlinger, Steve Tadlock, Tim Higgins, Mayor Suzette Cooke, John Hodgson, Ben Wolters, Beth Sylves, Patrick McClusky, Julie Pulliam, Steve Hunter I. Call to Order a. The meeting was called to order by Chair Mike Miller at 3:32 p.m. b. Approval of Minutes. Prindle moved to approve the minutes of the meeting of June 23, 2009. Sellers seconded and the motion carried. C. Update on Board Membership. Ben Wolters noted that Mike Miller will not be renewing his term and thanked him for his service. He explained that under state law the Board is filled by appointment by the • Kent City Council. II. Finance Report a. Review of State Sales Tax Revenues. Nachlinger reviewed the Revenue & Debt Service Fund and explained the sales tax rate increase under the streamline sales tax legislation which will not affect the public sales tax only the allocation from the state and reviewed the Kent Events Center operating fund. b. ShoWare Center Income Statement To-Date and Projection for the Year. McClusky reviewed the budget for June and July and explained the net loss resulting from a lack of events in June and July. Higgins explained that in the summer months other venues, such as amphi- theaters and outdoor venues do better than indoor venues. Steve Tadlock, Regional General Manager of SMG, commented that they are open to other activities in these months and with more activity picking up for the next year. Higgins explained that typically the first quarter is the busiest in the arena business followed by the fourth quarter, and the second quarter is traditionally the softest, a lot depends on how far a tenant might go into post season play. Public Facilities District August 27, 2009 • Page 2 McClusky explained that the building actually had about a 135 events throughout the year and averaged about one event every two and a half days so there is activity. Higgins noted that they are reviewing daily how to save money, and that utility costs are down 25%. Higgins explained that they are really working on fine tuning the costs of the building with slight fluctuation related to utility bills. Tadlock noted that this building has been in operation for eight months allowing them to review the type of events the building has had and really forecast more precisely than any per forma or even the opening budget could have predicted. He also noted that a line item analysis of non-event related indirect expenses are always going to be labor and energy, these areas helped to make staffing levels efficient. He stated that the touring industry in 2010 is going to be superior, so there is reason for optimism and a lot of confidence placed in the detailed analysis that was presented. II. Operator Update. a. Status of Event Booking/Attendance. Beth Sylves showed everyone the • LEED Gold Certified Plaque they had received. She stated that they were also awarded a money ball from the Globetrotters because of the sold out show and gross revenue numbers. Sylves reviewed the status on visitors to the web site which average about 2,400 unique visitors a month and encouraged everyone to visit the home page site with new changes made available by working with the naming partner ShoWare who is using their new media player as a way to market this new element. Sylves stated that through 2009 there are 19 Thunderbird games, eight performances of Ringling Brothers, eight performances of Disney on Ice, lingerie football, a concert event Halloween evening, a concert event with a faith-based Christian group and the just announced motorcycle ice racing. She added that the Chamber of Commerce is having their business expo here in October and also the Seattle BIM Fest (Building Interior Modeling). b. Marketing Update. Sylves noted that local and regional sponsorships are made available for upcoming events to local businesses to get involved and generate additional revenue. She also noted that group discounts have been made available to Chamber members and • partnership members for upcoming events, which have been well received. She mentioned that they are inserting sales pieces in the Chamber newsletter and Downtown Partnership newsletter pointing out Public Facilities District August 27, 2009 • Page 3 that ShoWare is a great spot for holiday functions this fall. The non- profit groups have doubled, by using the food and beverage provider for concession sales, it cuts down our expense and allows them to generate funds for their non-profit. Savor has new suite menus coming out in September and concessions will be revised with new menu items at the end of September. Sylves showed members a draft of the banners that will be hung on the light poles out front. IV. Seattle Thunderbirds Update. a. Thunderbird Schedule, Sales and Marketing_Update. Campbell reviewed the Thunderbird schedule and stated that it was well received from renewing season ticket holders. He mentioned that a series of different ticket packages are being offered that would increase individual game attendance, various promotions are being done for all the games to enhance individual game attendance and that, overall, season tickets are up from what they were at the end of last year and continue to sell. He also noted that they are marketing each of the cities throughout the area on different nights; also partnered with Comcast and Spotlight to run commercials throughout the year; the • FSM deal starting in January, there will be a game of the week involv- ing two of the U.S. based teams, we will promote the broadcast and the tickets for the games; partnered with the Kent Reporter and expanded that to include all the reporter newspapers in the area, and radio stations. b. Advertising_Sales Update. Campbell stated sales staff are working on a number of different packages for businesses and are trying to partner with different events that ShoWare has going on. C. Suite Sales Update. Campbell noted that the previous night a suite holder function was held and that these type of functions are good to build a data base for contacts. He mentioned that with the economy they did lose two one-year contracts, but are focusing on building a data base and being ready for when the economy turns around. He noted that they are re-ramping the game night presentation, trying to build more fan interaction and mentioned that there are 10 suites available. V. Other Business. a. Revisit and Confirm Meeting Dates. Wolters noted that the next regular • scheduled meeting is September 24. It was agreed that the meeting in November be held on the 19t". Wolters then advised that at the Public Facilities District August 27, 2009 Page 4 November 19th meeting, a regular meeting schedule should be established for 2010. VI. Adjournment. a. The meeting adjourned at 4:38 p.m. Mary Simmons Deputy City Clerk • •